🇺🇲 In response to Trump's announcement of a 50% tariff.
Chicago Fed President Austan Goolsbee stated that the new tariff threats from President Trump, including a 50% tariff on EU goods and 25% on iPhones not made in the U.S., have complicated monetary policy and are likely to lead the Fed to postpone interest rate cuts.
While he still believes that interest rates will decrease in the long term, he emphasized the need for caution due to the risk of inflation coupled with recession.
Goolsbee remains optimistic that over the next 10–16 months, interest rates could decrease significantly, but he does not commit to taking action before the Fed's next policy meeting on June 17–18.